Australia Central Bank Raises Interest Rate to 4.85% in 18-Year High
The Reserve Bank of Australia raised its interest rate by 0.25 percentage points to 4.85%, hitting an 18-year high to combat stubborn inflation in its fifth hike of 2026.
The Reserve Bank of Australia raised its benchmark interest rate by 0.25 percentage points to 4.85%, reaching an 18-year high as global central banks weigh monetary easing.
This marks the fifth rate hike since the beginning of 2026, driven by persistent inflation remaining above the central bank target range. The decision passed with a 6-3 vote, reflecting internal division regarding further tightening.
The move underscores the persistent challenge facing central authorities in balancing price stability against economic growth and household pressure. For Australian borrowers, the decision translates into an immediate increase in financing and mortgage costs.
